Also known as a request for reimbursement letter, a reimbursement letter is a document that cites a specific financial situation that exists between two parties, and identifies the need for one of those parties to receive a reimbursement of all or part of a financial contribution made as part of a financial transaction. The actual content of the letter may be somewhat informal, or it may be very detailed and formal, depending on the circumstances surrounding the transaction. There is a core list of items to address within the text of the letter, including providing identifying information regarding the transaction in questions, the amount of the requested reimbursement, and the type of payment terms that are considered acceptable.
With most reimbursement letter formats, the first task is to identify the reason for the reimbursement. For example, if a member of a health club has tendered payment for a year’s membership and must relocate for work toward the end of the first quarter of that year, he or she may notify the club of this change in status. Assuming the terms and conditions of membership allow for partial reimbursement of membership fees due to relocation of a member, providing this data helps to note that this particular situation is covered and some sort of reimbursement is due.
Along with stating the reasons for the request, a reimbursement letter should also identify the anticipated amount of the reimbursement. This allows the recipient the opportunity to double check the figures and determine if that amount is correct. Assuming both parties are interpreting the provisions of the agreement between them accurately, this courtesy simply helps to convey the understanding that everyone involved has the same level of expectations.
A third key component in any reimbursement letter is identifying acceptable methods of providing that reimbursement to the requesting party. The sender may request payment in the form of a check, a credit issued to a credit card account, or an electronic funds transfer to his or her bank account. This often helps to expedite the payment, since there is no need to issue additional communications in order to determine how the payment should be processed.
Once the reimbursement letter has been sent and received, many businesses will respond with an acknowledgement of the request and an outline of when payment the reimbursement will be issued. Typically, the amount of the reimbursement will be noted in the response, making it possible to know exactly how much will be reimbursed by way of a check, credit, or funds transfer. Assuming the requested amount and the approved amount are the same, the transaction is considered complete once the payment has been tendered.
